“For the first time in nearly 50 years, Great Britain’s inflation rate is expected spike beyond 18 percent, according to a dire new report from Citi.
Benjamin Nabarro, the chief UK economist at Citi, told clients at the start of the week that the bank expects CPI inflation to reach 18.6 percent by January,
in part due to soaring electricity and natural gas costs. (Related: The UK’s hyperinflationary track started to really become noticeable last year.) “
“Our latest estimate, updated for the further 25 percent and 7 percent rally in UK gas and electricity prices last week,
points to a further upside shift in UK inflation,” Nabarro said.
“Accounting for these developments, as well as updating our own weights for CPI / RPI and honing our own accounting for curve backwardation, we now expect CPI inflation to peak at over 18 percent in January. RPI inflation, we think, will peak at over 20 percent.” (Emphasis mine)
I’m canning as fast as I can! :)